Anyone who has NEP tokens can create a cover contract. To avoid spam, questionable, and confusing cover contracts, a creator has to burn 1000 NEP tokens. Additionally, the contract creator also needs to stake 4000 NEP tokens or more. The higher the sake, the more visibility the contract gets if there are multiple cover contracts with the same name or similar terms.
The contract creator will earn a steady income of 1% of all cover fees paid by the users. Initial contract creators will also earn additional 1% of the cover fees in NEP.
About Reporting Questionable or Invalid Contracts
The governance system allows NEP holders to vote to invalidate and remove any cover contract.
- The staked NEP tokens of the contract creator will be burned.
- The users having non-expired covers can withdraw their cover fee.
- The liquidity providers can withdraw their staked NEP tokens, stable-coins, and cover fees.
The liquidity providers can evaluate a cover contract and ensure that it is up to their satisfaction. One can then provide liquidity in BUSD or other supported cryptocurrency. A liquidity provider needs to also stake 250 NEP or higher.
To maximize return on investment, 25% of the idle/uncovered assets in the liquidity pool is supplied to Venus Protocol for lending. The interest received on loan is capitalized back into the liquidity pool, shared amongst all liquidity providers. The platform will deduct 2% of the profit generated to purchase (and burn) NEP tokens from decentralized exchange(s).
> This feature will be available starting from the Neptune Mutual Protocol v2.
The liquidity providers collectively earn cover fees paid by the platform users. Initial liquidity provider will receive additional 10% rewards in NEP tokens.
Anyone who holds 1 NEP token or higher can purchase a cover contract for up to 3 months in the future. No KYC is required.
To guarantee successful claim payout, the platform will restrict liquidity providers from withdrawing the locked assets for a set duration of time (configurable, governance).
The realized (non-claimable, expired) cover fees automatically accumulate in the pool. This ensures liquidity providers see their capital grow without having to withdraw.
Anyone can report an incident to have happened by staking 100 NEP tokens or higher in the cover contract pool. With this, the contract now becomes open for governance. The locked NEP tokens are added to the reporting pool balance on the “Incident Happened” side. Other people who disagree can also lock any amount of NEP tokens on “False Reporting” side.
This then puts the contract into “Reporting” status. The interested users can still purchase covers (if liquidity is available) for the future as the protocol automatically locks liquidity for successful claims in the future.
During the reporting period, users can stake their NEPs to vote. At the end of the reporting period, the side with the majority gets 75% of the minority’s stake. The remaining 25% stake is burned.
> To encourage competition and fast reporting, the protocol rewards the first reporter with 33% of the total reporting fees. To discourage malicious actors, the platform will burn if the majority disagree with the incident. If this happens, the first user who reported on the other side will get the 33% reward instead.
The protocol automatically deducts 6.5% of the fees. A portion of this fee is rewarded to the reporters while the majority of the fee (in stable-coins) is utilized to purchase NEP tokens from a decentralized exchange. The acquired NEP tokens are then burned, thereby reducing the total supply.
About Neptune Mutual Cover
Neptune Mutual is a decentralized cover protocol built on Binance Smart Chain. The Neptune Mutual protocol is conceptualized to function as a decentralized autonomous organization.
Stay Tuned for Latest Updates
Neptune Mutual Token (NEP)